| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 175.01 | 507 |
| Intrinsic value (DCF) | 15.69 | -46 |
| Graham-Dodd Method | 6.92 | -76 |
| Graham Formula | n/a |
Beijing LongRuan Technologies Inc. is a specialized software developer headquartered in China's capital, focusing on geographic information systems (GIS) and industry-specific solutions. Founded in 2002 by Shan Jun Mao, the company has established itself as a niche player in China's rapidly growing software application sector. LongRuan's core offerings include sophisticated GIS platforms, intelligent mining industry systems, smart security emergency rescue solutions, and virtual simulation technologies. The company's 'one-picture' geographic information system represents an integrated approach to spatial data management, while its security cloud service platform addresses the growing demand for digital security infrastructure. Operating on the Shanghai Stock Exchange's STAR Market, LongRuan serves critical industries including mining, emergency services, and urban planning through both standardized software products and customized technical services. As China continues to invest in digital transformation and smart city initiatives, LongRuan's specialized expertise in GIS and industry-specific applications positions it at the intersection of technology and infrastructure development. The company's focus on mission-critical systems for industrial and security applications differentiates it from general-purpose software providers.
Beijing LongRuan Technologies presents a specialized investment opportunity in China's GIS and industrial software market with notable risk considerations. The company's modest market capitalization of approximately CNY 2.27 billion reflects its small-cap status, while a beta of 1.43 indicates higher volatility than the broader market. Financially, LongRuan generated CNY 328.6 million in revenue with net income of CNY 33 million, translating to a healthy net margin of approximately 10%. The company maintains a strong balance sheet with CNY 83.2 million in cash against minimal debt of CNY 5.4 million, providing financial stability. However, operating cash flow of CNY 21.9 million suggests some pressure on cash generation relative to earnings. The dividend yield, while present, is modest at CNY 0.136 per share. Investment attractiveness is tempered by the company's niche focus and smaller scale compared to broader software players, though its specialization in GIS and industrial applications could benefit from China's ongoing digital infrastructure investments.
Beijing LongRuan Technologies operates in a highly competitive segment of China's software market, specializing in geographic information systems and industry-specific applications. The company's competitive positioning is defined by its niche focus on GIS technology applied to mining, security, and emergency response sectors. This specialization provides some insulation from broader software competition but places LongRuan in direct competition with both specialized GIS providers and larger technology companies offering comprehensive digital solutions. The company's competitive advantages include deep domain expertise in China's specific regulatory and industrial environment, long-standing relationships in key sectors like mining and public safety, and proprietary technology developed over two decades of operation. However, LongRuan faces significant challenges from scale disadvantages compared to larger software competitors who can leverage broader R&D budgets and more extensive sales networks. The company's modest revenue base of CNY 328.6 million limits its ability to compete on price or invest in rapid technological innovation. Additionally, as GIS technology becomes increasingly integrated into broader enterprise software platforms, LongRuan risks being marginalized by comprehensive solution providers. The company's future competitiveness will depend on its ability to maintain technological differentiation while potentially forming strategic partnerships to expand its market reach. Its listing on Shanghai's STAR Market provides access to capital but also subjects it to intense scrutiny in China's competitive technology landscape.